Consumer and Market Insights: Bakery and Cereals Market in UAE. CS1915MF April PDF Free Download

Consumer and Market Insights: Bakery and Cereals Market in UAE CS1915MF April 2015 1

Report scope This report brings together multiple data sources to provide a comprehensive overview of the Bakery and Cereals sector in UAE as part of our global coverage of the sector. This report draws on market data, analyzing value and volume data and category and channel distribution breakdown, also highlighting which categories are witnessing the biggest growth. Brand and Private Label analysis is also provided. It also contains top line foodservice transaction figures highlighting where the most opportunistic channels are for industry players in the country. Detailed packaging analysis is also provided, analyzing category trends and also packaging material and type. The report also contains qualitative analysis of the most influential consumer trends driving consumption occasions in the category, analyzing how these trends will evolve and highlighting best practice product examples to show how manufacturers are targeting the trend. Market data coverage: The overall market value and volume data included in the report is for the period 2014-2019. Category coverage: This report provides information on 11 categories including Bread & Rolls, Cakes, Pastries & Sweet Pies, Cookies (Sweet Biscuits), Morning Goods and Breakfast Cereals. More extensive brand coverage: The report provides more extensive brand share coverage. Brand share data is also validated by inputs from industry experts. Distribution channel: The Distribution data included in the report covers 11 distribution channels including Cash & Carries & Warehouse Clubs, Dollar Stores, Variety Stores & General Merchandise Retailers, Hypermarkets & Supermarkets, Convenience Stores Time period: The report provides overall market value and volume data, including category level data for the period 2009-2019. Distribution channel and brand share data is included for the year 2014. 5/12/2015 2 12/05/2015 5/12/2015 2

Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private label Share Consumer trends Examples of new product development Appendix 3

UAE s GDP per capita growth rate declined in 2014 due to fluctuations in oil prices GDP Per Capita (AED) Consumer Price Index Annual growth (%) Population (Million) Annual Growth (%) A large expatriate population from multi-cultural and various socio-economic backgrounds makes the market for consumer packaged goods in the country highly dynamic and rapidly evolving. GDP Per Capita 200,000 150,000 100,000 50,000 0 2009 2010 2011 2012 2013 2014 20% 10% 0% -10% -20% -30% -40% Population 10 8 6 4 2 0 2009 2010 2011 2012 2013 2014 15.0% 10.0% 5.0% 0.0% UAE s GDP per-capita grew at a CAGR of 6.7% during 2009-2013. However, the growth rate slowed down during 2013-2014 to 2.4% and GDP per capita was AED 171,392.2 in 2014. Consumer Price Index 108 104 100 2009 2010 2011 2012 2013 2014 Consumer prices in the UAE fluctuated during 2013-2014 and reached 105.8 basis points in 2014.. The population growth rate in the UAE declined during 2009-2014. The total population of the UAE was 9.5 million in 2014. Age Profile 80+ 70-79 60-69 50-59 40-49 30-39 20-29 10-19 The UAE has a large, young workforce. Those aged 0-9 between 20 and 39 account 20 for - 29 half of the total population. 4

Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private label Share Consumer trends Examples of new product development Appendix 5

The retail and foodservice markets in UAE: an overview This slide provides an overview of the retail and foodservice markets in UAE, in which industry players in the Bakery and Cereals sector operate: Retail Foodservice Country indicator Units Value Total value of Food market, 2014 US$ millions 5,387.8 Profit Sector Total number of transactions in the profit sector, 2014: 614.2 million Total volume of Food market, 2014 Total Food volume growth 2009-2014 Proportion of Bakery and Cereals as part of overall food volume, 2014 Biggest category within the Bakery and Cereals market as part of overall volume Private label penetration in Bakery and Cereals market, 2014 Millions of Kg 1,165.2 CAGR 4.8% % 57.4% % Bread & Rolls, 82.6% % 6.5% Largest channel in the profit sector and transactions, 2014: Restaurants, 437.7 million Cost Sector Total number of transactions in the cost sector, 2014: 253.7 million Largest channel in the cost sector and transactions, 2014: Education, 127.0 million Figures for overall food 2014 are forecasts. 6

The Bakery and Cereals market will register high growth both in value and volume terms during 2014-2019 Growth in consumption in the UAE s Bakery and Cereals market was higher in value terms compared to volume terms during 2009-2014. While it grew at CAGR 7.3% in terms of value, volume growth during 2009-2014 was recorded at CAGR 6.7%. Consumption in value terms is forecast to grow at a CAGR of 7.7%, which is higher than the volume growth at a CAGR 7.0% during 2014-2019. Market value of the UAE s Bakery and Cereals market, 2009-2019 Market volume of the UAE s Bakery and Cereals market, (Millions of Kg), 2009-2019 AED million US$ million 2009 2,220.2 604.5 304.6 421.0 591.1 2014 3,151.0 857.9 2019 4,567.6 1,243.6 CAGR 2009-2014 CAGR 2014-2019 7.3% 7.3% 7.7% 7.7% 2009 2014 2019 CAGR 2009-2014 6.7% CAGR 2014-2019 7.0% 7

UAE s Bakery & Cereals market will witness high growth in local currency terms during 2014-2019 Growth Rate (%) UAE s Bakery and Cereals market will witness high growth at a CAGR of 7.7% during 2014-2019 from AED3,151.0 million (US$857.9 million) in 2014 to AED4,567.6 million (US$1,243.6 million) in 2019. As rising numbers of health conscious consumers seek healthy Bakery and Cereal products, manufacturers will launch new products with innovative ingredients which will drive the sales in this market. Volume consumption in the Bakery and Cereals market totaled 421.0 kg million in 2014 and is forecast to reach 591.1 kg million by 2019 growing at a CAGR of 7.0% during 2014-2019. Market value (AED million and US$ million) and volume growth of Bakery and Cereals market, 2009-2019 9% 8% 7% 6% 5% Value (AED) 4% 3% Value (US$ m) Volume (Kg m) 2% 1% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 8

Consumers in UAE are trading down to value-for-money products amidst rising food price inflation 2014 Annual Change % In 2014, the value of the Bakery and Cereals market grew by 7.4% (year-on-year) and volume grew by 6.8%. The market prices grew by 0.6% whereas food inflation stood at 2.1%. Value sales are growing at a higher rate compared to volume consumption due to rising prices. Increasing food inflation in UAE is primarily due to rising input costs, and has resulted in consumers trading down to value-for-money Bakery & Cereals products during 2013-2014. Extent to which consumers are trading up or down in UAE's Bakery and Cereals market 10% 8% 0.6% 2.1% -1.5% 6% 4% 7.4% 6.8% 2% 0% Value Change Volume Change Average price Change Food Price Inflation Trading up or down 9

The Bread & Rolls category dominates volume consumption in the Bakery and Cereals market Market volume of UAE's Bakery and Cereals market, (Millions of Kg), 2014, by category 11.2 14.6 23.7 5.9 4.8 4.2 3.8 3.5 1.2 0.4 347.7 Bread & Rolls Cookies (Sweet Biscuits) Savory Biscuits Cakes, Pastries & Sweet Pies Breakfast Cereals Baking Mixes Morning Goods Dough Products Baking Ingredients The Bread & Rolls category is the largest category in volume terms, accounting for 82.6% of the market share. Breakfast Cereals are forecast to register the fastest growth in volume terms at a CAGR of 7.6% during 2014-2019. Market Volume, forecasted Compound Annual Growth Rate, 2014-2019 Market Volume (Kg m) 2014 CAGR 2014-2019 Bread & Rolls 347.7 7.2% Cookies (Sweet Biscuits) 23.7 5.5% Savory Biscuits 14.6 6.6% Cakes, Pastries & Sweet Pies 11.2 7.0% Breakfast Cereals 5.9 7.6% Baking Mixes 4.8 7.2% Cereal Bars Morning Goods 4.2 5.9% Energy Bars Dough Products 3.8 6.0% Baking Ingredients 3.5 5.6% Cereal Bars 1.2 6.1% Energy Bars 0.4 5.6% 10

Bread & Rolls is the largest category in value terms in UAE s Bakery and Cereals market 2014-2019 Category Value in AED CAGR (%) Bread & Rolls is the largest category by value in the Bakery and Cereals market with a 43.0% share. The Bread & Rolls category, valued at AED1,356.0 million (US$369.2 million) in 2014 will register a CAGR of 8.4% during 2014-2019. This is followed by the Cookies (Sweet Biscuits) and Savory Biscuits categories which accounted for 19.1% and 10.3% of the market, respectively in 2014. Market value of categories in UAE's Bakery and Cereals market 10% 8% 6% 4% 2% 0% 0% 2% 4% 6% 8% 10% 2009 2014 Category Value in AED CAGR (%) Bread & Rolls Cookies (Sweet Biscuits) Savory Biscuits Cakes, Pastries & Sweet Pies Breakfast Cereals Morning Goods Baking Ingredients Cereal Bars Dough Products Baking Mixes Energy Bars Bubble Size = 2014 Category value 11

Bread & Rolls and Cookies (Sweet Biscuits) are the leading categories by value in UAE s Bakery and Cereals market Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (AED Million) Value (AED Million) Annual Growth (%) Annual Growth (%) Market value of categories in the Bakery and Cereals market Bread & Rolls US$ Bread & Rolls AED 600 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 10% 8% 6% 4% 2% 0% The Bread & Rolls category is forecast to grow at a CAGR of 8.2% during 2009-2019 from AED921.2 million (US$250.8 million) in 2009 to AED2,027.6 million (US$552.0 million) in 2019. Sandwich Slices is the largest segment in the Bread & Rolls category and accounted for 20.8% of the market share in 2014. 2,500 2,000 1,500 1,000 500 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 10% 8% 6% 4% 2% 0% Cookies (Sweet Biscuits) US$ Cookies (Sweet Biscuits) AED 250 200 150 100 50 7% 6% 5% 4% 3% 2% 1% 1,000 800 600 400 200 8% 6% 4% 2% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% 0 20092010201120122013201420152016201720182019 0% Value (US$) Annual Growth (%) Value(AED) Annual Growth (%) The Cookies (Sweet Biscuits) category is forecast to grow at a CAGR of 6.0% during 2009-2019 from AED455.0 million (US$123.9 million) in 2009 to AED816.2 million (US$222.2 million) in 2019. Plain Cookies is the largest segment in the Cookies (Sweet Biscuits) category and accounted for 35.0% of the market share in 2014. 5/12/2015 12 12/05/2015 5/12/2015 12

Plain Crackers is the largest segment in the Savory Biscuits category during 2009-2019 Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (AED Million) Value (AED Million) Annual Growth (%) Annual Growth (%) Savory Biscuits US$ 140 120 100 80 60 40 20 0 Market value of categories in the Bakery and Cereals market 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 10% 8% 6% 4% 2% 0% Savory Biscuits AED The Savory Biscuits category is forecast to grow at a CAGR of 7.3% during 2009-2019 from AED230.6 million (US$62.8 million) in 2009 to AED466.3 million (US$127.0 million) in 2019. Plain Crackers is the largest segment in the Savory Biscuits category and accounted for 28.5% of the market share in 2014. 500 400 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 10% 8% 6% 4% 2% 0% Cakes, Pastries & Sweet Pies US$ Cakes, Pastries & Sweet Pies AED 100 10% 400 10% 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 8% 6% 4% 2% 0% The Cakes, Pastries & Sweet Pies category is forecast to grow at a CAGR of 8.0% during 2009-2019 from AED137.0 million (US$37.3 million) in 2009 to AED294.4 million (US$80.2 million) in 2019. Cakes is the largest segment in the Cakes, Pastries & Sweet Pies category and accounted for 36.5% of the market share in 2014. 300 200 100 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 8% 6% 4% 2% 0% 5/12/2015 13 12/05/2015 5/12/2015 13

Toaster Pastries will drive the growth in the Morning Goods category during 2009-2019 Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (AED Million) Value (AED Million) Annual Growth (%) Annual Growth (%) Market value of categories in the Bakery and Cereals market Breakfast Cereals US$ Breakfast Cereals AED 80 10% 8% 60 6% 40 4% 20 2% 0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 300 250 200 150 100 50 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 10% 8% 6% 4% 2% 0% The Breakfast Cereals category is forecast to grow at a CAGR of 8.7% during 2009-2019 from AED115.8 million (US$31.5 million) in 2009 to AED266.2 million (US$72.5 million) in 2019. Ready-to-Eat Cereals is the largest segment in the Breakfast Cereals category and accounted for 75.1% of the market share in 2014. Morning Goods US$ Morning Goods AED 60 50 40 8% 6% 200 150 8% 6% 30 20 10 4% 2% 100 50 4% 2% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% Value (US$) Annual Growth (%) Value(AED) Annual Growth (%) The Morning Goods category is forecast to grow at a CAGR of 6.8% during 2009-2019 from AED93.2 million (US$25.4 million) in 2009 to AED179.9 million (US$49.0 million) in 2019. Toaster Pastries is the largest segment in the Morning Goods category and accounted for 9.4% of the market share in 2014. 5/12/2015 14 12/05/2015 5/12/2015 14

Cake Decorations and Icing will drive the growth in the Baking Ingredients Category during 2009-2019 Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (AED Million) Value (AED Million) Annual Growth (%) Annual Growth (%) Baking Ingredients US$ 40 30 20 10 0 Market value of categories in the Bakery and Cereals market Baking Ingredients AED The Baking Ingredients category is forecast to grow at a CAGR of 6.5% during 2009-2019 from AED67.9 million (US$18.5 million) in 2009 to AED127.5 million (US$34.7 million) in 2019. Cake Decorations & Icing is the largest segment in the Baking Ingredients category and accounted for 13.8% of the market share in 2014. Cereal Bars US$ 35 30 25 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 8% 6% 4% 2% 0% 8% 6% 4% 2% 0% Cereal Bars AED The Cereal Bars category is forecast to grow at a CAGR of 6.9% during 2009-2019 from AED59.8 million (US$16.3 million) in 2009 to AED116.8 million (US$31.8 million) in 2019. Granola/Muesli/Yogurt Bars is the largest segment in the Cereal Bars category and accounted for 54.3% of the market share in 2014. 140 120 100 80 60 40 20 140 120 100 80 60 40 20 0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 8% 6% 4% 2% 0% 8% 6% 4% 2% 0% 5/12/2015 15 12/05/2015 5/12/2015 15

Pie & Pastry Shells will drive the growth in the Dough Products category during 2009-2019 Value (US$ Million) Value (US$ Million) Annual Growth (%) Annual Growth (%) Value (AED Million) Value (AED Million) Annual Growth (%) Annual Growth (%) Dough Products US$ 35 30 25 20 15 10 5 0 Market value of categories in the Bakery and Cereals market 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$) Annual Growth (%) 8% 6% 4% 2% 0% Dough Products AED The Dough Products category is forecast to grow at a CAGR of 6.5% during 2009-2019 from AED57.5 million (US$15.7 million) in 2009 to AED108.3 million (US$29.5 million) in 2019. Pie & Pastry Shells is the largest segment in the Dough Products category and accounted for 30.7% of the market share in 2014. 120 100 80 60 40 20 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value(AED) Annual Growth (%) 8% 6% 4% 2% 0% Baking Mixes US$ Baking Mixes AED 35 10% 120 10% 30 25 20 15 10 5 8% 6% 4% 2% 100 80 60 40 20 8% 6% 4% 2% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 0% Value (US$) Annual Growth (%) Value(AED) Annual Growth (%) The Baking Mixes category is forecast to grow at a CAGR of 7.9% during 2009-2019 from AED52.0 million (US$14.2 million) in 2009 to AED111.2 million (US$30.3 million) in 2019. Dessert Mixes is the largest segment in the Baking Mixes category and accounted for 26.1% of the market share in 2014. 5/12/2015 16 12/05/2015 5/12/2015 16

Energy Bars is the smallest category by value in UAE s Bakery and Cereals market Value (US$ Million) Annual Growth (%) Value (AED Million) Annual Growth (%) Market value of categories in the Bakery and Cereals market Energy Bars US$ Energy Bars AED 20 15 10 5 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 7% 6% 5% 4% 3% 2% 1% 0% 60 50 40 30 20 10 0 2009 20102011 20122013 20142015 2016 20172018 2019 7% 6% 5% 4% 3% 2% 1% 0% Value (US$) Annual Growth (%) Value(AED) Annual Growth (%) The Energy Bars category is forecast to grow at a CAGR of 5.8% during 2009-2019 from AED30.3 million (US$8.2 million) in 2009 to AED53.1 million (US$14.4 million) in 2019. 5/12/2015 17 12/05/2015 5/12/2015 17

Bread & Rolls category will gain maximum market share during 2014-2019 Winners Change in market share in the Bakery and Cereals market Losers Category Change in market share, 2014 2019 Category Change in market share, 2014 2019 1 Bread & Rolls 1.4% 1 Cookies (Sweet Biscuits) -1.2% The Bread & Rolls category is forecast to gain market share, growing from 43.0% in 2014 to 44.4% in 2019. The Cookies (Sweet Biscuits) category will lose market share, declining from 19.1% in 2014 to 17.9% in 2019. 2 Breakfast Cereals 0.3% 2 Baking Ingredients -0.1% The Breakfast Cereals category is forecast to gain market share, growing from 5.5% in 2014 to 5.8% in 2019. The Baking Ingredients category will lose market share, declining from 2.9% in 2014 to 2.8% in 2019. 3 Cakes, Pastries & Sweet Pies 0.1% 3 Morning Goods -0.1% The Cakes, Pastries & Sweet Pies category is forecast to gain market share, growing from 6.3% in 2014 to 6.4% in 2019. The Morning Goods category will lose market share, declining from 4.1% in 2014 to 4.0% in 2019. 18

Category level pricing Average category level prices (AED) in UAE s Bakery & Cereals market, 2014 Category Average Price/ Kg (AED) Average Price/Kg (USD) Bread & Rolls 3.9 1.1 Cookies (Sweet Biscuits) 25.4 6.9 Savory Biscuits 22.1 6.0 Cakes, Pastries & Sweet Pies 17.8 4.8 Breakfast Cereals 29.6 8.1 Morning Goods 30.4 8.3 Baking Ingredients 26.1 7.1 Cereal Bars 72.1 19.6 Dough Products 20.7 5.6 Baking Mixes 15.7 4.3 Energy Bars 99.5 27.1 5/12/2015 19 12/05/2015 5/12/2015 19

Sandwich Slices is the fastest growing segment in the Bread & Rolls category Segment s share of the overall category by value and change in market share in UAE s Bakery and Cereals market, 2014 Category Segment Segment s Share, 2014 Change 2014/2019 Sandwich Slices 20.8% 0.5% Loaves 19.3% -0.5% Rolls 19.2% 0.4% Bread & Rolls Ciabatta 10.6% 0.3% Burger Buns 10.1% -0.5% Baguettes 9.3% -0.5% Other Breads 8.4% 0.3% Frozen Bread & Rolls 2.2% 0.0% Plain Cookies 35.0% -0.2% Butter-Based Cookies 21.6% -0.3% Assortments 11.6% -0.1% Cookies (Sweet Biscuits) Chocolate Cookies 8.5% 0.4% American Cookies 7.3% 0.0% Cream Filled 6.7% -0.1% Wafer Biscuits 3.4% 0.2% 5/12/2015 20 12/05/2015 5/12/2015 20

Plain Crackers will gain maximum market share in the Savory Biscuits category Segment s share of the overall category by value and change in market share in UAE s Bakery and Cereals market, 2014 Category Segment Segment s Share, 2014 Change 2014/2019 Artisanal Cookies 3.1% 0.0% Cookies (Sweet Biscuits) Other Cookies 2.8% 0.1% Egg-Based 0.0% 0.0% Plain Crackers 28.5% 1.5% Savory Biscuits Bread Substitutes 26.7% -0.1% Other Crackers 24.2% -0.9% Cheese-Flavoured Crackers 20.6% -0.6% Cakes 36.5% 1.2% Cakes, Pastries & Sweet Pies Frozen Cakes & Pastries 24.9% 1.0% Pastries 21.1% -0.9% Sweet Pies 17.5% -1.3% Breakfast Cereals Ready-to-Eat Cereals 75.1% -0.2% Hot Cereals 24.9% 0.2% 5/12/2015 21 12/05/2015 5/12/2015 21

Toaster Pastries is the largest segment in the Morning Goods category Segment s share of the overall category by value and change in market share in UAE s Bakery and Cereals market, 2014 Category Segment Segment s Share, 2014 Change 2014/2019 Toaster Pastries 9.4% 0.2% Donuts 8.7% -0.2% Buns & Teacakes 8.6% 0.0% Morning Goods Pain Au Chocolate 8.1% 0.2% Scones 7.9% -0.1% Waffles 7.7% -0.1% Pancakes 7.5% -0.1% Breakfast Cakes 6.9% 0.1% Pain Au Raisan 6.7% 0.2% Madeleines 6.4% 0.0% Muffins 5.9% -0.2% Croissants 4.9% 0.0% 5/12/2015 22 12/05/2015 5/12/2015 22

Non-Chocolate Baking Chips will gain maximum market share in the Baking Ingredients Category Segment s share of the overall category by value and change in market share in UAE s Bakery and Cereals market, 2014 Category Segment Segment s Share, 2014 Change 2014/2019 Other (Morning Goods) 4.5% 0.1% Morning Goods Crumpets 3.7% 0.0% Frozen Morning Goods 3.0% 0.0% Cake Decorations & Icing 13.8% -0.1% Baking Chocolate Chips & Morsels 12.2% 0.1% Baking Powder/Soda 11.6% -0.6% Non-Chocolate Baking Chips 11.5% 1.7% Baking Ingredients Desiccated Coconut 10.3% 0.4% Dry Yeast 9.7% -0.4% Fruit Pectins and Glazed Fruit 8.9% -0.4% Other Baking Ingredients 7.9% -0.4% Corn & Potato Starch 7.4% -0.1% Cocoa-Baking 6.7% -0.3% 5/12/2015 23 12/05/2015 5/12/2015 23

Pizza Bases will gain maximum market share in the Dough Products category Segment s share of the overall category by value and change in market share in UAE s Bakery and Cereals market, 2014 Category Segment Segment s Share, 2014 Cereal Bars Dough Products Baking Mixes 5/12/2015 24 Change 2014/2019 Granola/Muesli/Yogurt Bars 54.3% 1.8% Other Cereal Bars 45.7% -1.8% Pie & Pastry Shells 30.7% -1.1% Pizza Bases 24.6% 1.7% Prepared Pastry (other) 24.4% -0.9% Frozen Dough Products 20.3% 0.3% Dessert Mixes 26.1% -2.6% Cake Mixes 16.6% 1.7% Brownie Mixes 12.8% 0.7% Bread Mixes 11.5% 0.6% Rolls/Biscuit Mixes 9.9% -0.1% Pancake Mixes 9.2% -0.1% Other Baking Mixes 7.1% -0.3% Muffin Mixes 6.8% 0.0% Energy Bars Energy Bars 100.0% 0.0% 12/05/2015 5/12/2015 24

Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Brand and Private label Share Consumer Trends Examples of New Product Development Appendix 25

Leading Profiles of retailers: selected Grocery Retailers Leading retailers in the UAE s Food market, 2014 Leading retailers, the UAE Company Name Al Maya Group Overview Al Maya Group is one of the largest retail chains operating in the UAE. It operates 40 stores across different formats including Hypermarkets & Supermarkets. Spinney's Spinney's is a high-end supermarket in the UAE, which is also operational in grocery retailing. Lulu Lulu Supermarkets is a diversified supermarket chain that operates across various formats and is part of the EMKE group. Safeer Safeer is one of the largest hypermarket chains in the Gulf and operates 35 outlets, including department stores. T.Choithram & Sons (TCS) is the operator of Choithrams supermarkets. Choithrams Choithrams 30 stores are well spread across the UAE and are wellknown for their fresh quality products. 5/12/2015 26 12/05/2015 5/12/2015 26

Hypermarkets & Supermarkets is the leading distribution channel in UAE s Food market Value (US$ billion) Leading distribution channels in UAE s Bakery and Cereals market, 2014 Leading distribution channels Overall Food Leading distribution channels Bakery and Cereals 3 2% Hypermarkets & Supermarkets 2010 23% 2 51% Convenience Stores 1 2013 Food & Drinks Specialists 0 Hypermarkets & Supermarkets Food & Drinks Specialists Convenience Stores Others 24% Others Bakery and Cereals as a percentage of overall Food: Bakery and Cereals accounted for 15.7% of the total Food retail consumption in UAE in 2013. Hypermarkets & Supermarkets is the leading distributors for Food in UAE accounting for 49.7% of the market share in 2013 and registered growth at a CAGR of 5.8% during 2010-2013. This is followed by Food & Drinks Specialists which accounted for 26.5% of the market share. The Bakery and Cereals market in the UAE follows a similar trend as for overall Food distribution with Hypermarkets & Supermarkets leading in terms of distribution and accounting for 51.2% of the market share in 2014. This is followed by Convenience Stores and Food & Drinks Specialists with market shares of 23.7% and 23.2%, respectively during the same year. 27

Hypermarkets & Supermarkets are the leading distribution channel in the UAE s Bakery and Cereals market Leading distribution channels by category in the Bakery and Cereals market, 2014 Key distribution channels Bread & Rolls Key distribution channels Cookies (Sweet Biscuits) 11% 2% Hypermarkets & Supermarkets 20% 1% Hypermarkets & Supermarkets Convenience Stores Food & Drinks Specialists 54% Food & Drinks Specialists 57% Convenience Stores 33% Others 22% Others Key distribution channels Savory Biscuits Key distribution channels Cakes, Pastries & Sweet Pies 18% 2% Hypermarkets & Supermarkets 8% 7% 3% Food & Drinks Specialists Food & Drinks Specialists Hypermarkets & Supermarkets 22% 58% Convenience Stores Others Convenience Stores Others 83% 28

Food & Drink Specialists is the leading distribution channel in the Breakfast Cereals category Leading distribution channels by category in the Bakery and Cereals market, 2014 Key distribution channels Breakfast Cereals Key distribution channels Morning Goods 7% 2% 13% 2% Food & Drinks Specialists Convenience Stores Hypermarkets & Supermarkets Hypermarkets & Supermarkets 45% 46% Convenience Stores 40% Others 45% Food & Drinks Specialists Others Key distribution channels Baking Ingredients Key distribution channels Cereal Bars 8% 1% Hypermarkets & Supermarkets Food & Drinks Specialists 6% 1% Hypermarkets & Supermarkets Food & Drinks Specialists Convenience Stores 32% 59% Others 22% 56% Convenience Stores Others 29

Hypermarkets & Supermarkets is the major distribution channel for the Dough Products, Baking Mixes and Energy Bars categories Leading distribution channels by category in the Bakery and Cereals market, 2014 Key distribution channels Dough Products Key distribution channels Baking Mixes 8% 2% Hypermarkets & Supermarkets 8% 2% Hypermarkets & Supermarkets Food & Drinks Specialists Food & Drinks Specialists Convenience Stores Convenience Stores 33% 57% Others 35% 55% Others Key distribution channels Energy Bars 13% 1% Hypermarkets & Supermarkets Food & Drinks Specialists 28% 58% Convenience Stores Others 30

Flexible Packaging is the most commonly used packaging material while Bag/Sachet is the most frequently used container type in the Bakery and Cereals market Key Packaging Materials Overview of UAE s Bakery and Cereals market by type of packaging in 2014 Key Packaging Materials by category Flexible Packaging 65.5% 19% 8% 8% 21% Flexible Packaging Paper & Board Others 4% 25% 23% 15% 1% 3% 56% 1% 1% Paper & Board 20.9% 49% 92% 71% 100% 74% 74% 81% 15% 99% 99% 100% Rigid Plastics 9.6% 32% Cookies (Sweet Biscuits) Bread & Rolls Savory Biscuits Cereal Bars Baking Ingredients Morning Goods Breakfast Cereals 29% Cakes, Pastries Dough Products Baking Mixes Energy Bars & Sweet Pies Flexible Packaging is the most commonly used packaging material in the Bakery and Cereals market in the UAE followed by Paper & Board. Key Container Types Flexible Packaging is most commonly used for the packaging of the majority of Bakery and Cereal categories. Key Container Types by category Bag/Sachet Tray Others 5% 3%1% Bag/Sachet Tray 27% 59% Film 10% 58% 4% 8% 88% 2% 10% 27% 27% 23% 15% 100% 71% 73% 74% 77% 45% 26% 2% 98% 1% 14% 86% 100% Others 32% Cookies (Sweet Biscuits) Bread & Rolls Savory Biscuits Cereal Bars Baking Ingredients 29% Morning Goods Breakfast CerealsCakes, Pastries & Dough Products Baking Mixes Energy Bars Sweet Pies Bag/Sachet is the most commonly used container type in the Bakery and Cereals market, and accounted for 59.1% of the containers used in 2014, followed by Tray. Bag/Sachet is mostly used for the packaging of Dough Products, Baking Mixes, Breakfast Cereals and Savory Biscuits categories. 32

Plastic Tie is the most commonly used closure type in the Bakery and Cereals market Overview of UAE s Bakery and Cereals market by packaging closures/outers used in 2014 Key Packaging Closures 1 Plastic Tie 2 Prize Off 3 Film Plastic Tie closures were the most commonly used closures and accounted for 12.6% of the market share in 2014, followed by Prize Off closures with 3.7%. Key Packaging Outers 12.6% 3.7% 1.8% Key Packaging Closures by category 8% 8% 36% The Bread & Rolls category uses Plastic Ties, while the Baking Ingredients category uses Film closures. * Data for Bakery and Cereals using Closures. Plastic Tie Prize Off Others 10% 16% Key Packaging Outers by category 23% 4% 1% 12% 1% 2% Cookies (Sweet Biscuits) Bread & Rolls Baking Ingredients Morning Goods Breakfast Cereals Cakes, Pastries & Sweet Pies Baking Mixes 8% 2% Bag Box Others 1 2 3 Bag Box Sleeve 20.3% 12.8% 0.2% 17% 47% 2% 27% 4% 15% 6% 64% 3% 12% 1% 76% 25% Bag was the most commonly used outer for Bakery and Cereals in UAE and accounted for 20.8% of the market share in 2014. Cookies (Sweet Savory Biscuits Cereal Bars Baking Biscuits) Ingredients Morning Goods Bag outers were most commonly used for the packaging of Cookies (Sweet Biscuits). * Data for Bakery and Cereals using outers. Breakfast Cereals Cakes, Pastries Dough Products Baking Mixes Energy Bars & Sweet Pies 33

Plastic Tie will register the fastest growth among all Closures types during 2014-2019 Million Units Million Units Million Units Million Units Key Packaging Materials 400 350 300 250 200 150 100 50 0 Overview of the Bakery and Cereals market by type of packaging in 2019 2014 2019 Flexible Packaging Paper & Board Rigid Plastics Key Container Types 350 300 250 200 150 100 50 0 2014 2019 Bag/Sachet Tray Film Flexible Packaging is forecast to grow at a CAGR of 6.3% during 2014-2019 to reach 341.5 million units in 2019. Key Packaging Closures 80 60 40 20 0 2014 2019 Plastic Tie Prize Off Film Plastic Tie closures are forecast to register a CAGR of 7.1% during 2014-2019 reaching 68.3 million units in 2019. The use of Bag/Sachet containers is forecast to grow at a CAGR of 6.3% during 2014-2019, to reach 308.5 million units in 2019. Key Packaging Outers 120 100 80 60 40 20 0 Bag 2014 2019 Box Bag outers will register a CAGR of 5.6% during 2014-2019 reaching 102.3 million units in 2019. 34

The Morning Goods category has the highest private label penetration in the UAE's Bakery and Cereals market The overall penetration of private label products in the UAE s Bakery and Cereals market stood at 6.5% in 2014. The Morning Goods category has the highest private label penetration with a 47.8% share. This is followed by the Baking Ingredients and Savory Biscuits categories with 10.3% and 9.2% shares, respectively. Penetration of private label, by categories, in the Bakery and Cereals market, 2014 Private Label Brand 100% 80% 60% 40% 20% 0% Morning Goods Baking Ingredients Savory Biscuits Overall Bread & Rolls Cookies (Sweet Biscuits) Breakfast Cereals 36

Growth of private label is fastest in the Bread & Rolls category 2011-2014 Private label value in AED CAGR (%) In the UAE s Bakery and Cereals market, private label products grew at a CAGR of 9.2%, compared to 7.2% growth of brands during 2011-2014. The Bread & Rolls category, registered fastest growth among private label products at a CAGR of 10.0% during 2011-2014, followed by the Breakfast Cereals and Morning Goods categories with CAGRs of 9.4% and 8.8%, respectively during the same period. Private label value performance compared to brand value performance, by categories, in UAE s Bakery and Cereals market, 2011-2014 12% 10% Private Labels are taking market share from Brands 8% 6% 4% 2% Bread & Rolls Morning Goods Savory Biscuits Cookies (Sweet Biscuits) Baking Ingredients Breakfast Cereals 0% Brands are taking market share from Private labels 0% 2% 4% 6% 8% 10% 12% 2011-2014 Brand value in AED CAGR (%) Bubble size = 2014 Private Label value 37

Tiffany is the leading brand in the Cookies (Sweet Biscuits) category Bread & Rolls Brand share Leading brands market share Cookies (Sweet Biscuits) Brand share Leading brands market share 9.5% 13.1% 29.4% 20.0% Artisanal Producers Golden Loaf Capricorn Bakery L'Usine Private Label Others 4.1% 9.2% 19.0% 9.8% 16.4% Tiffany Royal Dansk Britannia Oreo Private Label Others Savory Biscuits Brand share Leading brands market share Cakes, pastries & Sweet Pies Brand share Leading brands market share McVitie's 3.5% 3.2% 2.3% 5.2% 36.5% Britannia Tiffany Leibniz - Others Americana Galaxy Ulker 13.0% 23.6% Private Label Others Switz Others 38

Corn Flakes (Kellogg s) is the leading brand in the Breakfast Cereals category Breakfast Cereals Brand share Leading brands market share Morning Goods Brand share Leading brands market share 14.5% 11.5% Corn Flakes (Kellogg's) Special K Sultan Corn Flakes Private Label 7.7% 5.5% Kwality (Breakfast Cereals) Private Label Others 47.8% Others Baking Ingredients Brand share Leading brands market share Cereal Bars Brand share Leading brands market share 18.1% Foster Clark's Natco (Baking Ingredients) SIS 30.1% Nature Valley Special K 7.4% 8.1% 12.6% 16.0% Al Baker Private Label Others 8.8% 11.5% 19.4% Nutri-Grain Weetabix Others 39

Al Karamah is the leading brand in the Dough Products category Dough Products Brand share Leading brands market share Baking Mixes Brand share Leading brands market share 23.6% Al Karamah 6.1% 39.4% Betty Crocker Sunbulah Al Alali Pillsbury Pillsbury 21.9% Kg Pastry Others 20.4% Jotis Others 7.7% 10.9% 22.2% Energy Bars Brand share Leading brands market share 36.0% Be Natural Weight Watchers Nature Valley 15.2% 15.7% Others 40

Artisanal Producers lead the sales in the Bread & Rolls category Bread & Rolls Brand shares in the Bakery and Cereals market, 2014 Cookies (Sweet Biscuits) Brand Share of category, 2014 Artisanal Producers 29.4% Golden Loaf 20.0% Capricorn Bakery 13.1% L'Usine 9.5% Modern Bakery 6.6% Swiss Cottage 4.5% Van de meulen 2.6% Al Arz Automatic 2.5% Hot Breads 2.0% 7 Days 1.9% Delba 0.8% Private Label 5.6% Others 1.5% Brand Share of category, 2014 Tiffany 19.0% Royal Dansk 16.4% Britannia 9.8% Oreo 9.2% Good Day 7.2% Walkers 3.9% Americana 3.0% Nutro Digestive 1.7% Bahlsen Leibniz 1.4% Ulker 0.9% McVitie's Digestive 0.7% Halwani Maamoul 0.5% McVitie's - Others 0.4% Table water 0.4% Private Label 4.1% Others 21.6% 41

McVitie s is the leading brand in the Savory Biscuits category Brand shares in the Bakery and Cereals market, 2014 Savory Biscuits Cakes, Pastries & Sweet Pies Brand Share of category, 2014 Brand Share of category, 2014 McVitie's 36.5% Americana 3.5% Britannia 23.6% Galaxy 3.2% Tiffany 13.0% Ulker 2.9% Leibniz - Others 5.2% Switz 2.3% Loacker 2.8% Al jadeed 0.6% Nutro 2.1% Yamama 0.5% Ritz 0.8% Others 86.9% TUC 0.7% Private Label 9.2% Others 6.1% 42

Corn Flakes (Kellogg s) is the leading brand in the Breakfast Cereals category Breakfast Cereals Brand Share of category, 2014 Corn Flakes (Kellogg's) 14.5% Special K 11.5% Sultan Corn Flakes 7.7% Kwality (Breakfast Cereals) 5.5% Fitness 3.8% Rice Krispies 3.6% Coco Pops 3.6% Cheerios 3.5% Nesquik 3.3% Frosties 3.3% Trix 2.9% Fruit & fibre 2.8% Cookie Crisp 2.8% Chocos 2.7% Miel Pops 2.3% Brand shares in the Bakery and Cereals market, 2014 Breakfast Cereals Brand Share of category, 2014 Fruit Loops 2.2% Dorset Cereals 2.2% Fruit 'N' Fibre 2.1% Crunchy Nut 2.1% Alpen 1.9% Lion 1.8% Kolln muesli 1.8% Golden Grahams 1.7% Golean crunch 1.7% Smacks 1.6% All-Bran 1.4% Jordans 1.0% Quaker 0.9% Crunch 0.8% Private Label 2.7% Others 0.3% 43

Foster Clark s is the leading brand in the Baking Ingredients category Morning Goods Brand shares in the Bakery and Cereals market, 2014 Baking Ingredients Brand Share of category, 2014 Private Label 47.8% Others 52.2% Cereal Bars Brand Share of category, 2014 Nature Valley 30.1% Special K 19.4% Nutri-Grain 11.5% Weetabix 8.8% Rice Krispies 8.6% Brand Share of category, 2014 Foster Clark's 18.1% Natco (Baking Ingredients) 16.0% SIS 12.6% Al Baker 8.1% Safa 7.4% Dr. Oetker 5.6% DCL 4.4% Private Label 10.3% Others 17.5% Alpen 4.7% Others 16.9% 44

Betty Crocker is the leading brand in the Baking Mixes category Brand shares in the Bakery and Cereals market, 2014 Dough Products Baking Mixes Brand Share of category, 2014 Brand Share of category, 2014 Al Karamah 23.6% Betty Crocker 39.4% Sunbulah 21.9% Al Alali 22.2% Pillsbury 10.9% Pillsbury 20.4% Kg Pastry 7.7% Jotis 6.1% Others 35.9% Others 11.9% Energy Bars Brand Share of category, 2014 Be Natural 36.0% Weight Watchers 15.7% Nature Valley 15.2% Others 33.1% 45

Trend 1: Busy Lives: Hectic schedules are driving consumption of convenient and wholesome Bakery and Cereal products Busy Lives How the Busy Lives trend will influence Bakery and Cereals consumption in the UAE Long working hours and increasingly busy lifestyles, whereby consumers are trying to fit more activities into the same amount of time, are leading to a lack of time or motivation to prepare food. This results in consumers looking for convenient snacking solutions, such as Bread, Cakes, Pastries, and Breakfast Cereals over the traditional meal. A convenient pack of Bakery & Cereals products, such as multigrain toast or whole grain Bread & Rolls that provide on-the-go healthy food, suit the fast paced lifestyles of UAE consumers. New products to capitalize on this trend are being launched. For example, L usine offers wholesome and ready-toeat Croissants, Bread & Rolls, and Morning Goods for busy consumers, who do not have time for sit-down meals. These products are convenient and can easily be carried for on-the-go consumption. Key demographics to target Both Men and Women Aged 25-45+ Urban and Rural Key categories to target All categories Rate at which the trend will evolve Fast 5/12/2015 47 12/05/2015 5/12/2015 47

Trend 2: Fun & Enjoyment: Bakery and Cereal products that have a fun element make for a good treat during get-togethers or festive occasions Fun & Enjoyment How the Fun & Enjoyment trend will influence Bakery and Cereals consumption in the UAE UAE consumers are seeking additional Fun & Enjoyment from their Bakery & Cereals, and look for snacks that accompany their moments of fun With a growing economy and rising disposable incomes, consumers see additional value in products that offer an enjoyable experience Of the UAE population, 50% is aged below 30 years, which makes Fun & Enjoyment an important element of snack foods. Bakery & Cereals marketers are developing products with innovative flavors, shapes, and packaging in order to attract consumers looking for products that offer more Fun & Enjoyment Companies such as Golden Loaf have offered a wide variety of Cookies and Biscuits for Emirati consumers. Available in regional flavors such as dates, plum and shamer, these make an ideal treat for festive occasions or get-togethers. Key demographics to target Both Men and Women Aged 19-45+ Urban Key categories to target All categories Rate at which the trend will evolve Fast 5/12/2015 48 12/05/2015 5/12/2015 48

Trend 3: Experience Seeking: Exclusive packaging and new variants appeal the experience seeking UAE consumers Experience Seeking How the Experience Seeking trend will influence Bakery and Cereals consumption in the UAE UAE consumers seek novel experiences through trying out products with unique ingredients or flavors. A variety of Bakery foods offer a wide range of tastes and flavors that are authentic and unique, and which provide interesting experiences. Many UAE consumers are affluent and have high disposable incomes. Additionally, the majority of the population is below the age of 30, and younger consumes are often more inclined to experiment and sample new products. Manufacturers are introducing Bakery and Cereals products with a blend of new flavors, textures and tastes to capitalize on this trend. For example, IFFCO has introduced Cakes under its Tom brand in three new variants: apricot, strawberry and chocolate, the cakes are individually packaged and filled with the flavor, providing consumers with a different experience suitable for on-the-go consumption. Key demographics to target Both Men and Women Aged 19-45+ Urban & Rural Key categories to target Cookies Morning Goods Savory Biscuits Cereal Bars Bread & Rolls Cakes, Pastries & Sweet Pies Rate at which the trend will evolve Fast 5/12/2015 49 12/05/2015 5/12/2015 49

Trend 4: Indulgence: Bakery and Cereals products that offer rich and opulent taste experiences appeal to consumers seeking indulgence Indulgence How the Indulgence trend will influence Bakery and Cereals consumption in the UAE 4 The growing urban culture has led consumers to increasingly seek ways in which they can indulge in their desires and achieve the feel good factor, even if only momentarily. This is driving the consumption of Bakery and Cereals products such as Cakes, Pastries, Morning Goods, Savory Biscuits, and Cookies As a result manufacturers focus on providing indulgent products as treats, with the best tastes and flavors, derived using the best quality ingredients. These treats not only satisfy the need for quality, but also offer a rewarding experience to consumers For example, Tiffany has offered crunch and cream Cookies in different shapes. These Cookies have premium packaging and a unique finish that appeals to consumers who desire indulgent products Key demographics to target Both Men and Women Aged 19-45+ Urban Key categories to target Cookies Savory Biscuits Cereal Bars Bread & Rolls Cakes, Pastries & Sweet Pies Rate at which the trend will evolve Fast 5/12/2015 50 12/05/2015 5/12/2015 50

Healthier and premium products to drive demand in the UAE Bakery & Cereals market Canadean predicts that the following drivers will rise in importance over the next five years to become increasingly influential motivators of consumption within the market. Greater demand for healthier Bakery & Cereal products Increased health awareness among UAE consumers will drive demand for Bakery & Cereals products that are high in fiber and calcium, fortified with omega 3, and highlight their functional benefits. In the Breakfast Cereals category the inclusion of dietary fiber, which, among other benefits, lowers the risk of coronary heart disease, and wholegrain products have increased in popularity. Furthermore, manufacturers have added nutritious ingredients such as dried fruits and honey, that offer the original products additional nutritional and taste benefits, thereby meeting multiple key need states. Premiumisation is a key trend in the UAE market The UAE is one of the richest economies in the Middle East with an urbanization rate of 84%, and has a high demand for premium bakery products. Inline with high disposable incomes, rising demand for the finest quality Cookies, Pastries, and Bread & Rolls is a key trend. In addition, an ever growing expatriate population is driving demand for imported goods popular in their countries, such as Royal Dansk. Consumers in the UAE have also shown a limited tendency to trade down during the global economic slowdown as the underlying economic condition in the region remained largely stable. Customized packaging to gain wider acceptability In the UAE Bakery & Cereals market, products with customized packaging are expected to gain popularity. Manufacturers have introduced Bakery & Cereals products that can be designed to meet the individual needs of consumers, offering a wide range of flavors, products that match different dietary needs, gluten free products, and those suited to lifestyle needs such as vegetarianism. Consumers are now able to choose from the various options available. For example, Kelsen Group has launched a Design your own brand concept where their Cookie assortment, packaging type, and design are customized to meet individual requirements. 5/12/2015 51 12/05/2015 5/12/2015 51

Table of Contents Country Context Market Overview Retail Landscape and Key Distribution Channels Packaging Company and Private Label Share Consumer Trends Examples of New Product Development Appendix 52

Examples of new product development in the UAE Bakery and Cereals market Brand: Golden Loaf Manufacturer: Golden Loaf Golden Loaf offers a wide variety of Cookies and Biscuits for UAE consumers. Available in regional flavors such as dates, plum and shamer, these make for a suitable party treat. Trend alignment: Fun & Enjoyment Brand: Tiffany Manufacturer: IFFCO Tiffany offers crunch and cream Cookies. Available in different shapes, these Cookies have premium packaging and a unique finish that appeals to consumers who desire indulgent products. Trend alignment: Indulgence Brand: l úsine Manufacturer: Almarai L usine offers wholesome and ready-to-eat Croissants, Bread & Rolls, and Morning Goods for busy consumers who need to eat on-the-go. The Rolls are also made with whole grain ingredients and are available in small, convenient packs. Trend alignment: Busy Lives Brand: Tom Manufacturer: IFFCO Tom has introduced Cakes in different packaging variations such as slices, pounds or muffins. The Muffins are available in three flavors for consumers seeking new experiences. Trend alignment: Experience Seeking 5/12/2015 53 12/05/2015 5/12/2015 53

Appendix - Country Context Exchange Rates: US$-AED, 2009 2019 Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 US$-AED Exchange Rate (Annual Average) 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 GDP Per Capita (AED) Year 2009 2010 2011 2012 2013 2014 GDP Per Capita (AED) 121,239.6 125,043.2 143,439.9 153,112.7 167,413.8 171392.2 Population Year 2009 2010 2011 2012 2013 2014 Total (Millions) 7.7 8.4 8.9 9.2 9.3 9.5 Annual Growth (%) 13.5% 9.4% 9.4% 5.7% 3.1% 1.5% Consumer Price Index Year 2009 2010 2011 2012 2013 2014 Index 100 101 102 102 104 106 Age Profile (Millions of Persons) Age Group 0 to 9 10 to 19 20 to 29 30 to 39 40 to 49 50 to 59 60 to 69 70 to 79 80+ Total (Millions) 1.4 1.0 2.2 2.6 1.5 0.5 0.1 0.0 0.0 55

Appendix Sector Overview The UAE s Food sales Distribution (US$ Billion) 2010 2013 Hypermarkets & Supermarkets 2.1 2.5 Food & Drinks Specialists 1.1 1.3 Convenience Stores 0.9 1.0 Others 0.7 0.7 Components Of Change 2013-2014 Annual (%) Food Price Inflation 2.1% Change in Sales Value 7.4% Change in Sales Volume 6.8% Change in Average Price Paid 0.6% Trading Down or Up -1.5% 56

Appendix Sector Overview The UAE s Bakery and Cereals Market Value by Category (US$ Million and AED Million) Category 2014 Value (US$ Million) 2009 2014 CAGR (%) 2014 2019 CAGR (%) 2014 Value (AED Million) 2009 2014 CAGR (%) 2014 2019 CAGR (%) Bread & Rolls 369.2 8.0% 8.4% 1,356.0 8.0% 8.4% Cookies (Sweet Biscuits) 163.6 5.7% 6.3% 600.9 5.7% 6.3% Savory Biscuits 88.1 7.0% 7.6% 323.5 7.0% 7.6% Cakes, Pastries & Sweet Pies 54.4 7.9% 8.1% 199.9 7.9% 8.1% Breakfast Cereals 47.6 8.6% 8.8% 174.7 8.6% 8.8% Morning Goods 34.9 6.6% 7.0% 128.3 6.6% 7.0% Baking Ingredients 25.1 6.3% 6.7% 92.4 6.3% 6.7% Cereal Bars 22.6 6.8% 7.0% 83.1 6.8% 7.0% Dough Products 21.1 6.2% 6.9% 77.6 6.2% 6.9% Baking Mixes 20.5 7.6% 8.2% 75.2 7.7% 8.2% Energy Bars 10.8 5.5% 6.1% 39.5 5.5% 6.1% 57

Appendix Category Data Bread & Rolls Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 250.8 270.7 292.3 315.7 341.3 369.2 399.6 432.8 469.1 508.7 552.0 Growth (%) 7.9% 7.9% 8.0% 8.0% 8.1% 8.2% 8.2% 8.3% 8.4% 8.4% 8.5% Value (AED Million) 921.2 994.0 1,073.3 1,159.6 1,253.5 1,356.0 1,467.8 1,589.8 1,723.0 1,868.6 2,027.6 Growth (%) 7.9% 7.9% 8.0% 8.0% 8.1% 8.2% 8.2% 8.3% 8.4% 8.4% 8.5% Cookies (Sweet Biscuits) Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 123.9 130.7 138.0 145.9 154.4 163.6 173.6 184.3 196.0 208.6 222.2 Growth (%) 5.3% 5.5% 5.6% 5.7% 5.8% 6.0% 6.1% 6.2% 6.3% 6.4% 6.5% Value (AED Million) 455.0 479.8 506.7 535.7 567.0 600.9 637.5 677.1 719.8 766.1 816.2 Growth (%) 5.3% 5.5% 5.6% 5.7% 5.8% 6.0% 6.1% 6.2% 6.3% 6.4% 6.5% Savory Biscuits Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 62.8 67.0 71.7 76.7 82.1 88.1 94.6 101.6 109.3 117.8 127.0 Growth (%) 6.6% 6.8% 6.9% 7.0% 7.1% 7.2% 7.4% 7.5% 7.6% 7.7% 7.8% Value (AED Million) 230.6 246.2 263.2 281.6 301.7 323.5 347.3 373.3 401.6 432.5 466.3 Growth (%) 6.6% 6.8% 6.9% 7.0% 7.1% 7.2% 7.4% 7.5% 7.6% 7.7% 7.8% 58

Appendix Category Data Cakes, Pastries & Sweet Pies Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 37.3 40.2 43.3 46.7 50.4 54.4 58.8 63.5 68.6 74.1 80.2 Growth (%) 7.7% 7.8% 7.8% 7.9% 7.9% 7.9% 8.0% 8.0% 8.1% 8.1% 8.1% Value (AED Million) 137.0 147.6 159.2 171.7 185.2 199.9 215.8 233.1 251.9 272.3 294.4 Growth (%) 7.7% 7.8% 7.8% 7.9% 7.9% 7.9% 8.0% 8.0% 8.1% 8.1% 8.1% Breakfast Cereals Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 31.5 34.2 37.1 40.3 43.8 47.6 51.7 56.2 61.2 66.6 72.5 Growth (%) 8.4% 8.5% 8.5% 8.6% 8.6% 8.6% 8.7% 8.7% 8.8% 8.8% 8.9% Value (AED Million) 115.8 125.6 136.3 148.0 160.8 174.7 189.9 206.5 224.7 244.5 266.2 Growth (%) 8.4% 8.5% 8.5% 8.6% 8.6% 8.7% 8.7% 8.7% 8.8% 8.8% 8.9% Morning Goods Market Value 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Value (US$ Million) 25.4 27.0 28.8 30.7 32.7 34.9 37.3 39.9 42.7 45.7 49.0 Growth (%) 6.3% 6.4% 6.5% 6.6% 6.7% 6.7% 6.8% 6.9% 7.0% 7.1% 7.2% Value (AED Million) 93.2 99.2 105.7 112.6 120.2 128.3 137.1 146.5 156.8 167.9 179.9 Growth (%) 6.3% 6.4% 6.5% 6.6% 6.7% 6.8% 6.8% 6.9% 7.0% 7.1% 7.2% 59

Consumer and Market Insights: Bakery and Cereals Market in UAE. CS1915MF April 2015